Letter 4388, Withdrawal Solicitation, is sent when the IRS believes the collection function has already resolved the issue you raised in your Collection Due Process hearing request. Appeals is asking whether you want to withdraw the hearing, usually by signing Form 12256.
Withdrawal Is a Real Decision
Withdrawing ends the hearing. You lose the Notice of Determination, the right to petition the Tax Court, and the levy and statute suspension that came with your timely request. If the problem truly is solved, that trade costs you nothing. If it is not, you have given up your strongest procedural protection.
Verify Before You Sign
Get the resolution in writing. If it is an installment agreement, you should have an acceptance letter showing the monthly amount and the tax periods covered. If the balance was paid or abated, pull an account transcript and confirm a zero balance. If the issue was a lien, confirm the release, withdrawal, or subordination was actually filed.
If anything is missing, do not withdraw. Tell Appeals what is still unresolved and let the hearing continue. There is no penalty for declining to withdraw.
If you received Letter 4388 and want a second set of eyes before you withdraw, call us at (813) 229-7100.